When thinking about buying your home in Singapore, you must consider getting an Executive Condominium (EC). Property prices in Singapore are at an all-time high, and the trend is only expected to continue, especially for areas with high population density due to their proximity to offices and commercial areas. ECs are becoming increasingly popular, especially among the younger generation, as they combine the facilities of gated compounds, like providing round-the-clock security and other amenities with the low-interest rate of public housing. It is a hybrid system that maximizes facilities for homeowners while minimizing the cost.
Another great thing about Executive Condominium Singapore is that they are strategically located away from the city center and the MRT stations, which means they offer peaceful living without the hustle and bustle of the big city life.
Factors to consider when purchasing an Executive Condominium Singapore
While owning private property in Singapore is a huge investment, with executive condos, there is a way for individuals to afford quality living without breaking the bank. There are, however, a few factors that buyers must consider before making an offer.
1.Eligibility:
General eligibility is the number one factor that determines whether you qualify to get an EC in Singapore or not. While ECs, may be sold by private developers, they are partly subsidized by the government. There is a strict criterion that is used to determine whether an EC can be sold to a specific buyer at least initially.
Anyone applying for an EC purchase must be a citizen and over the age of 21 years, and no other property must be owned by the applicant. Since the idea is to help provide low-cost housing to individuals, meeting this criterion is the first basic step to weed out people who might be purchasing just to gain a profit and not to get affordable housing.
It is important to establish eligibility before you can start the process of applying for an EC. The stats above show just how profitable investment ECs are, especially the more recent ones like the Parc Greenwich. This is why there is a strict criterion for eligibility that must be met.
2. Income level:
The second factor to consider is the income level. This is because EC is targeted towards the middle class. Individuals who earn enough that it prevents them from applying for public housing but not enough to afford private property. It is for the ‘sandwich class’. Initially, the ceiling for monthly income was $12,000 per household, but that has been increased to $16,000 as of October 2021. If you fall in the income level that enables you to apply for an EC, then getting a condo in Parc Greenwich is the best decision you can make. The project is identical to the best private condos in Singapore, and you can enjoy a lifestyle at par with those that earn a much higher income.
3. Accessibility to CPF housing funds:
Applicants who are eligible, due to their citizenship, income level, and marital status, can even have access to Central Provident Funds (CPF) for housing. Singapore real estate investment may not be feasible for everyone, even if they fulfill all the criteria specified for EC buyers. Couples applying for the first time and those who fulfill all other eligibility requirements can get anywhere between $10,000 and $30,000 in CPF Housing Grants.
Despite the facility of having access to CPF grants, you must keep in mind that arranging for funds is the applicant’s responsibility. This means having a great credit rating is necessary.
4. Amenities:
Executive Condominium Singapore is designed and built by private developers who are responsible for making private condos as well. This means that ECs are identical to private condos in terms of the amenities provided. Most ECs are gated and have a 24/7 security system in place. They have swimming pools, fully equipped gyms, tennis courts, and all the usual facilities found in private condos. The only difference is that they just don’t quite as much as the private property does. This makes ECs perfect for anyone, from newlywed couples to those with young children. ECs provide a suitable environment for safe and comfortable living. Some of the top ECs, like Parc Greenwich, are famous for these high-end facilities that replicate the luxurious life of private condos.
Here is a layout of the Parc Greenwich ECs; as can be seen, the development offers a lot of facilities:
Parc Greenwich is surrounded on three sides by major roads that allow for accessibility and easy mobility, and the development itself is divided into sections. It has a fully functioning swimming pool, spa garden, wellness club, playground, community gardens, BBQ pavilions, gyms, clubhouse, child care center, and many other facilities. Being a recently developed EC project, Parc Greenwich has all the latest amenities.
5. Profitability:
The Singapore property price index indicates that demand for EC is high as it is a profitable venture in the long run. Naturally, there are a few restrictions considering that despite having the facilities of the best private condos, ECs cost much less because they are subsidized by the government. First-time buyers of EC are subject to a Minimum Occupation Period (MOP) of 5 years. During the first five years, buyers can neither sell nor rent out their ECs. After five years, they can sell the condo to other Singaporean citizens or Permanent Residents (PR). If buyers wait a further five years, so ten years in total, they can even sell the ECs to foreigners. The ownership of EC produces an inverted funnel effect whereby ownership and, therefore, profitability is greatly restricted for the MOP. After the first five years, both the ownership status and profitability improve, and after 10 years, profitability can be fully realized. While owners may be restricted initially, this is mitigated by the much lower entry price they pay to acquire the property.
6. Type of family structure:
Like already mentioned, ECs are aimed to accommodate a very specific section of society. It is a way of enabling young professionals who might not have the means to afford private housing in Singapore real estate to own a property. Because it is more of a family living space, singles are not allowed to apply. You can only apply with a spouse or your significant other. For individuals who are divorced or widowed, they can apply with their parents or children if they are of the appropriate age. ECs is suitable for the nuclear family structure due to the size of the condos as well as the amenities available on site.
Due to its amazing facilities and affordable rates, Parc Greenwich is the best EC option for families. The development offers two bedrooms, three bedrooms, and even four-bedroom condos, which means that families of any size can be accommodated easily.
Choosing an Executive Condominium Singapore
There are plenty of ECs that have been developed to cater to the growing demand for condo living in Singapore. But once you have decided on getting an EC and are eligible for one, then choosing the best is a no-brainer. Parc Greenwich happens to be the latest addition to the Singapore real estate market and happens to be one of the most high-quality developments of its kind. Parc Greenwich is the possibly one of the best ways to achieve a high-end lifestyle even if you make a humble living.
The project has major parks and includes many other leisure activities for residents. Parc Greenwich design concept is distinctly divided into three sections; Suburban Oasis Living, the part of the development that consists of condos surrounded by greenery; Tranquility Enclave, like its name it is the part of the ECs that maximize peace by being far away from the city center; and Wellness, the area that provides a fine living environment which assists in invigorating the mind and the body.
Parc Greenwich is a brand new executive condo project that promises and delivers upon all the facilities found at the most expensive private condos in Singapore.
Deciding upon buying property and making a move is no easy task. It is a major investment that requires a lot of contemplation and analysis of many different factors. ECs are perhaps the best living arrangements for middle-class working families in Singapore. It is no surprise that so many are opting for this government-funded scheme has some amazing benefits and with careful considerations, you can truly enjoy the benefits of modern luxury living together with affordability which may also lead to a potential rise in your real estate investment.
